This will reduce the inequalities of income as the difference between disposable income of higher income and lower income groups will fall. This will also provide more resources to the government for spending on welfare of the poor.
(b) National income calculated on the basis of current price levels whereas National income at constant prices means that NI is being calculated by using a base year prices to...
(d) Fringe Benefits Tax (FBT) was the tax applied to most, although not all, fringe benefits. A new tax was imposed on employers by India’s Finance Act 2005 and was...
(a) Abolishing the subsidies will lead to higher prices of goods and services which are subsidzed. A reduction in the tax rate would be a stimulus. While increase in government...
Spending on free services to the poor raises their standard of living and at the same time helps in reduction in income inequalities. It also helps in raising production potential...
(i) It is direct tax as its impact and incidence is on the same person.
(ii) It is indirect tax as its impact and incidence are on different persons.
(iii) It is...
Short and long-term interest rates affect the demand for the product and services. For example, in case of construction companies and automobile manufacturers, low longer term rates are beneficial because...
